Laos kip is the currency of Laos

If you want to find out which currency is in Laos, thenour article will help to understand this. In the named state, the official currency is the local bale. The Laos bales include 100 at. This monetary unit was put into circulation instead of the Indo-China piaster in 1955. The exchange of old banknotes for new banknotes was carried out in a ratio of 1 to 1. In the international currency denomination the currency of Laos has the code LAK. In addition, the symbol ₭ or K is used for it.

History of monetary units of Laos

The piastre, preceding the kip, was introduced intotreatment in the territory of the Indochinese colonies of France in 1878. The issue of currency was the private Bank of Indochina. At first, the piastre was equated with the Mexican peso. It included 24.4935 g of pure silver. However, in the summer of 1895 the content of this metal in a monetary unit decreased and became 24.3 g.

After 35 years, the gold content of the Indo-Chinese piastre was set at 0.5895 grams of gold. But a year later, in 1936, it was liquidated.

After the occupation of Japan by French IndochinaThe piastre continued to be the official local unit. His course towards the Japanese yen was set at about 1 to 1. Nevertheless, after the end of World War II, at the end of 1945, quotations of the piastre were again affixed to the French franc in the ratio 1 to 17. In May 1953 the ratio changed and was already 1:10.

Introduction of own national currency

On the eve of the new year 1955 in the capital of FranceParis signed an agreement, which terminated the existence of the Issue Bank of the Indochinese states. These included Cambodia, Laos and Vietnam. Assets and liabilities of the financial institution were divided between the new national treasuries. The currency of Laos and its issue fell within the scope of responsibility of the established National Bank of the state.

In 1976, the country won the revolution. The consequence of those events was the denomination, which was subjected to the currency of Laos. The exchange rate of old banknotes for new banknotes was 20 to 1. Nevertheless, the rapidly growing inflation led to the need to conduct a new denomination in 3 years.

This time the old bills were exchanged for new onesbanknotes in the ratio of 100 to 1. In 1980, metal coins with a denomination of 10, 20 and 50 at. But, because of the further devaluation of the national currency, they practically do not participate in trade and payment transactions. Paper bills are used mainly to exchange for American dollars.

Laotian bale notes

To date, the currency is in circulationLaos worth one, five, ten, fifty, one hundred and five hundred bale. In addition, a high level of inflation and devaluation led to the need to issue banknotes of higher denomination. Therefore, in circulation, trade and payment transactions, bills of one thousand, two thousand, five thousand, ten thousand, twenty thousand, fifty thousand and one hundred thousand kip are used.

Laotian banknote decoration

Laos currency of petty dignity on its frontside contains an image of a peasant with a plow working in rice fields, shepherds and a tank of armed forces. On the obverse of the kip of greater denomination is the image of the founder of the Lao People's Democratic Republic, Kayson Fomvikhan. The reverse of all the bills depicts the government building, as well as various situations from the life of the peoples of the Laos state.

All Laotian bale bills have a reliableprotection from counterfeiting in the form of a watermark, consisting of a portrait of Cason Fomvihan. In addition, the structure of banknotes uses a special security thread, running from right to left across the entire width of the bill.

Features of the use and exchange of bales in Laos

It should be noted that the Lao Kip isthe only official currency in this country. Nevertheless, not only the national currency of Laos, but also American dollars and Thai baht are involved in the turnover in the territory of the state. Kip is mainly used for small purchases.

Banks in Laos work all weekdays: from Monday to Friday. The institutions are opening at 8 in the morning. From 12 pm until lunch time. Then banks work from 13:30 to 17:30 in the evening.

The currency in Laos is subject to exchange not only inbanking institutions. You can convert money to local exchange offices. However, in these points the rate of Lao bale in relation to other currencies may slightly differ from the official one.

You can also exchange money at the airport. It should be noted that many local banks work only with US dollars or Thai baht, so they can not get into them. It should be emphasized that it is often more profitable to exchange dollars and baht for bale in exchange offices, rather than on the street with traders. The most acceptable exchange rate can be found in exchange offices operating in the markets of cities and in the territory of shopping areas. True, there is much higher risk of becoming a victim of scammers.

Payment by credit cards and traveler's checks

Large banks of the country work with plasticmaps of the world's major payment systems. Tourist checks can be exchanged for cash only at the offices of international banking institutions of Laos. To avoid unnecessary costs caused by fluctuations in the exchange rate, it is advisable to bring traveler's checks here in US dollars or Thai baht. Kip is not a freely convertible currency, so it will hardly be possible to exchange it for other bank notes outside of Laos.